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2006 OECD Economic Surveys: Netherlands 2006

image of OECD Economic Surveys: Netherlands 2006

This 2005 OECD Economic Survey of the Dutch economy (published as the second issue in the 2006 volume) examines key economic challenges including putting public finances on a sustainable path, increasing resiliency in labour markets, strengthening product market competition, and improving the environment for innovation. As always, it assesses short-term prospects and provides a series of policy recommendations.

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Assessment and Recommendations

After having stagnated during the past five years, the Dutch economy finally appears to have begun to recover. Substantial progress has been made towards correcting the financial imbalances that contributed to the downturn. Furthermore, major labour market, social benefit and health care reforms are underway to enhance labour utilisation and labour productivity. At the same time, cost competitiveness is being gradually restored. Barring further international energy price spikes, the Dutch economy should grow above trend in 2006, turning the page on one of the worst periods of stagnation since the 1930s. Even so, the economy remains vulnerable in the face of adverse shocks.

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